In a report released yesterday, Robert Ohmes from Bank of America Securities reiterated a Buy rating on AutoZone, with a price target of $4,800.00.
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Robert Ohmes has given his Buy rating due to a combination of factors including AutoZone’s strong performance in domestic comparable sales, particularly in the DIY and Pro segments, which showed sequential improvement and momentum. Despite some margin pressures, the company has managed to maintain a positive outlook with Pro traffic increasing significantly.
Additionally, AutoZone’s strategic investments in growth initiatives, such as opening new stores domestically and internationally, are expected to help the company gain market share, particularly in the Pro segment. The company’s resilience during economic downturns, potential benefits from inflation, and favorable dynamics in the used versus new car market further support the Buy rating. Ohmes also notes the company’s ability to manage gross margin pressures over time, despite ongoing LIFO charges and rising product costs.
In another report released yesterday, D.A. Davidson also reiterated a Buy rating on the stock with a $4,850.00 price target.
Based on the recent corporate insider activity of 70 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AZO in relation to earlier this year.